InterDigital's use of cookies

Cookies are important to the proper functioning of a website. To improve your experience, we use cookies to remember log-in details and provide secure log-in, collect statistics to optimize site functionality, and deliver content tailored to your interests. By continuing to browse or closing this banner, you indicate your agreement.

The Vault

The Vault

Enterprise Internet of Things (IoT) solutions are one of the hot button topics of the technology space for 2016. To better understand the dynamics involved with the adoption and deployment of IoT solutions among US enterprises, Machina Research was commissioned by the Telecommunications Industry Association (TIA), InterDigital and Telit to develop a survey of enterprise decision makers focused on core IoT elements. This white paper provides an analytical assessment of top trends in IoT as detailed by US company executives and addresses their top project objectives, the key role of technology standards, deployment strategies, as well as future deployment and spending expectations.

We found some problems with the form:

To view this content please fill out the form below to tell us about you.

Smart city technologies could save enterprises, governments and citizens globally over US $5 trillion annually by 2022. This is the conclusion reached by ABI Research in this new white paper, which analyzes the scope for cost savings and efficiency as a driver for smart city deployments, smart technologies and the...

Internet of Things
Enterprise Survey
A TIA White Paper
SPONSORED BY
Prepared by
Andy Castonguay
Principal Analyst, Machina Research
machinaresearch.com
tiaonline.org
Background to This Paper
About TIA
The Telecommunications Industry Association (TIA) represents manufacturers and suppliers
of global communications networks through standards development, policy and advocacy,
business opportunities, market intelligence, and events and networking. TIA enhances the
business environment for broadband, mobile wireless, information technology, networks,
cable, satellite and unified communications. Members? products and services empower
communications in every industry and market, including healthcare, education, security,
public safety, transportation, government, the military, the environment, and entertainment.
Visit tiaonline.org for more details. TIA is accredited by the American National Standards
Institute (ANSI) and is a proud sponsor of ANSI?s Standards Boost Business campaign.
Visit www.standardsboostbusiness.org for details.
About Machina Research
Machina Research is a leading provider of market intelligence and strategic insight on the
rapidly emerging Machine-to-Machine (M2M), Internet of Things and Big Data opportunities.
It provides market intelligence and strategic insight to help clients, including mobile network
operator, device vendor, infrastructure vendor, service provider and potential end users, maxi-
mize opportunities from these rapidly emerging markets. Machina Research?s Advisory Service
consists of a set of Research Streams covering all aspects of M2M and IoT. Subscriptions to
these multi-client services comprise Reports, Research Notes, Forecasts, Strategy Briefings and
Analyst Enquiry. Furthermore, our Custom Research and Consulting team is available to meet
your specific research requirements. This might include business case analysis, go-to-market
strategies, sales support or marketing/white papers. For more information, visit https://machin-
aresearch.com, or email enquiries@machinaresearch.com.
About InterDigital, Inc.
InterDigital, Inc., designs and develops advanced technologies that enable and enhance
mobile communications and capabilities. Founded in 1972, our engineers have designed and
developed a wide range of innovations used in mobile technology products and networks that
include 2G, 3G, 4G and IEEE 802-related products and networks.
For more than four decades, InterDigital has been a pioneer in mobile technology and a key
contributor to global wireless standards. Our team of more than 150 engineers?nearly 75 per-
cent of whom hold advanced degrees, including nearly 50 PhDs?has unparalleled expertise
in major mobile connectivity and content delivery technologies. Since 2000, InterDigital has
spent close to $900 million on technology research and development.
The company?s activities are organized around the concept of the Living Network: a future
where intelligent networks self-optimize to deliver service tailored to the content, context and
connectivity of the user, device or need.
About Telit
Telit is the global leader in Internet of Things (IoT) enablement. We offer the industry?s broadest
portfolio of integrated products, platforms and services to support and enable IoT deployments
from things to apps. Our portfolio of modules addresses all cellular communication technol-
ogies, GNSS and short-to-long range wireless applications. Our IoT connectivity plans and IoT
platform services help reduce the risks, time to market, complexity and costs associated with
deploying and providing IoT services across industries and vertical markets worldwide.
IoT Enterprise Survey Executive Summary
Enterprise Internet of Things (IoT) solutions are one of the hot button topics of the technology space for 2016. To
better understand the dynamics involved with the adoption and deployment of IoT solutions among US enterprises,
Machina Research was commissioned by the Telecommunications Industry Association (TIA), InterDigital and Telit
to develop a survey of enterprise decision makers focused on core IoT elements. This white paper provides an
analytical assessment of top trends in IoT as detailed by US company executives and addresses their top project
objectives, the key role of technology standards, deployment strategies, as well as future deployment and spending
expectations. Here is an executive summary of the top findings from our survey:
Internet of Things solutions have reached critical mass, fast becoming a top concern for U.S. enterprise decision
makers. Executives who participated in this study strongly indicated that IoT adoption has already gained significant
traction among US enterprises in the context of both strategic planning and execution. In fact, 48% of respondents
stated that their companies are actively using IoT technologies in their business with an additional 43% looking
to deploy IoT solutions in the next 24 months. At this pace, IoT will become a mainstream enterprise element by
the beginning of 2019. While many current IoT deployments are still limited in scope, US companies are already
gearing up for the integration of IoT solutions within their broader array of enterprise systems. As highlighted in
Figure 1, 76% of responding companies reported that they are exclusively or primarily focused on integrating legacy
business systems with IoT solutions in the next two years. There is also clear recognition among decision makers
that significant company resources will need to be allocated to ensure the success of IoT initiatives. Towards that
end, executive respondents indicated that they are prepared to put some significant skin in the IoT game, with
the expectation that 44% of 2020 IT budgets, on average, will be dedicated to IoT projects development and
maintenance. These combined elements underscore the impact that IoT is already having with US companies and
highlights the scale of IoT transformation to take place in the short term.
TIA?s IoT Enterprise Survey
Figure 1: Future focus of enterprise IoT projects
Source: TIA Survey, 2016
2?
??
? ? ? ?????? ?????????Machina?Research?and?TIA,?2016
development?and?maintenance.?These?combined?elements?underscore?the?impact?that?IoT?is?
already?having?with?US?companies?and?highlights?the?scale?of?IoT?transformation?to?take?place?
in?the?short?term.?
Figure?1?1?Future?focus?of?enterprise?IoT?projects?[Source:?TIA?Survey,?2016]?
?
2) Standards are crucial to successful IoT adoption at both the industry and enterprise level.?
Facing? a? dizzying? array? of? technology,? integration? and? design? choices? for? IoT? projects,?
enterprises?emphatically?underscored?the?key?role?of?standards?in?the?evolution?of?successful?
IoT?implementations.?In?particular,?the?majority?of?respondents?(66%)?stated?that?standards?
were?either?crucial?or?significantly? important?to??future?proofing??company?operations?and?
(61%)?products?and?services.?Specifically,?respondents?pointed?to?future?proofing?devices?and?
equipment? as? the? most? important? category? on? which? standards? can? impact? future?
compatibility.?Enterprises?also?highlighted?the?need?for?standards?to?be?more?adaptable?to?
innovation? trends? and? interoperable? in? order? to? become? a? greater? catalyst? of? IoT?
development.?Of?near?equal? importance? in?the?minds?of?enterprise? leaders? is? the?need? for?
consolidation? among? the? fragmented? universe? of? IoT?related? standards? to? drive? greater?
adoption?of?IoT?technologies.?
3) Driving better monitoring and analysis of product performance are top reasons for IoT
adoption.? Historically,? enterprises? chose? machine?to?machine? (M2M)? solutions? to? reduce?
operational? expenses,? increase? revenues? and/or? aid? in? regulatory? compliance.? As? IoT?
architectures? have? become? more? flexible? and? capable? they? have? replaced? M2M? point?
solutions? and? expanded? the? value? of? IoT? data? to? enterprises.? While? the? reduction? of?
operational?expenses?and?revenue?expansion?continue?to?be?important?strategic?reasons?for?
IoT?adoption,?enterprises? report? that? their? top? two?strategic? reasons? for?adopting? IoT?now?
22%
54%
19%
3% 3%
23%
37%
31%
7%
2%
0%
10%
20%
30%
40%
50%
60%
Exclusively?focused?on
integration?with?legacy
systems,?with?no
independent?IoT
projects
Primarily?focused?on
integration?with?legacy
systems?with?some?new
IoT?solutions
development
Primarily?focused?on
development?of?new?IoT
solutions,?with?some
legacy?integration
Exclusively?focused?on
development?of?new?IoT
solutions?with?no?legacy
integration
Don't?know
Expected?Enterprise?IoT?Project?Objectives
Expected?focus?for?2016?2017 Expected?focus?by?2020
2 W H I T E P A P E R | I O T E N T E R P R I S E S U R V E Y A
Standards are crucial to successful IoT adoption at both the industry and enterprise level.
Facing a dizzying array of technology, integration and design choices for IoT projects, enterprises
emphatically underscored the key role of standards in the evolution of successful IoT imple-
mentations. In particular, the majority of respondents (66%) stated that standards were either
crucial or significantly important to ?future proofing? company operations and (61%) products
and services. Specifically, respondents pointed to future proofing devices and equipment as the
most important category on which standards can impact future compatibility. Enterprises also
highlighted the need for standards to be more adaptable to innovation trends and interoperable
in order to become a greater catalyst of IoT development. Of near equal importance in the
minds of enterprise leaders is the need for consolidation among the fragmented universe of
IoT-related standards to drive greater adoption of IoT technologies.
Driving better monitoring and analysis of product performance are top reasons for IoT adop-
tion. Historically, enterprises chose machine-to-machine (M2M) solutions to reduce operational
expenses, increase revenues and/or aid in regulatory compliance. As IoT architectures have
become more flexible and capable they have replaced M2M point solutions and expanded
the value of IoT data to enterprises. While the reduction of operational expenses and revenue
expansion continue to be important strategic reasons for IoT adoption, enterprises report that
their top two strategic reasons for adopting IoT now include the ability to a) monitor product
performance to improve service and maintenance efforts (e.g. develop preventive maintenance
initiatives) and b) analyze data from IoT device performance to improve future design consider-
ations. This significant shift in focus points to the increasingly important role that IoT data can
play across an enterprise?s many business units in driving product and service improvements.
Enterprises value implementation partners who can provide comprehensive, end-to-end
services and support. Driven by concerns over the complexity of IoT integration with legacy
systems, security and implementation expense, US enterprises overwhelmingly favour solutions
partners that offer deployment support across the entire service delivery chain. Partners that
offer hands-on, comprehensive services such as system integrators and end-to-end service
providers represent the top echelon of IoT partner choices for 59% of respondents. With their
expanding partner ecosystems and, in some instances, strong services integration teams,
software platform companies like Salesforce.com, SAP and others were selected by 16% of
companies as a trusted IoT implementation partner. The relatively focused nature of the top
types of trusted IoT partner belies the diversity and fragmented nature of the IoT vendor eco-
system and suggests the likelihood of consolidation in the market in the short-term. To survive
this coming shake out, companies should endeavour to build the assets, teams and partners
necessary to provide a seamless, end-to-end solution that notably reduces the complexity of
implementation and integration with legacy systems.
A W H I T E P A P E R | I O T E N T E R P R I S E S U R V E Y 3
Methodology
The Telecommunications Industry Association (TIA), InterDigital and Telit commissioned Machi-
na Research to develop a study of 200 business decision makers among U.S. companies with
familiarity with their company?s use and planned use of the Internet of Things to optimize
their business operations or to build intelligent, Internet-connected products. The survey was
designed to solicit details about the IoT activities and plans, as well as enterprise perceptions
of the benefits and status quo of technological standards in their industry sectors.
f Qualified respondents were required to be of senior managerial level, working in relevant business
functions, employed in companies with greater than USD10m in annual revenue and knowledgeable
of their companies? IoT strategy and efforts.
f Survey respondents completed the survey between March 30 and April 4, 2016.
f The survey utilized an online questionnaire designed to be completed in less than 15 minutes.
f MarketKnowledge Online was retained to oversee the programming and execution of the survey.
The industry scope spans all major industry categories, including both public and private sector.
The distribution of respondents by company type was broad, but primarily (65%) generated
by enterprises in the manufacturing, banking/finance, technology and healthcare sectors. The
remaining 35% of respondents was from a wide spectrum of sectors, as detailed in Figure 2.
Figure 2: Survey industry scope
Source: TIA Survey, 2016
4?
??
? ? ? ?????? ?????????Machina?Research?and?TIA,?2016
The?industry?scope?spans?all?major?industry?categories,?including?both?public?and?private?sector.?The?
distribution?of?respondents?by?company?type?was?broad,?but?primarily?(65%)?generated?by?enterprises?
in? the?manufacturing,? banking/finance,? technology? and? healthcare? sectors.? The? remaining? 35%? of?
respondents?was?from?a?wide?spectrum?of?sectors,?as?detailed?in?Figure?2?1?below.?
Figure?2?1?Survey?industry?scope?[Source:?TIA?Survey,?2016]?
?
To?qualify? for? the? survey,? respondents?were? required? to?work? in? companies?with?over?USD10m? in?
annual?revenue.?Of?the?200?respondents,?60%?work? in?companies?with?annual?revenues?of?at? least?
USD100m,?while? the?mean?annual? revenue? for? the?overall? respondent? sample?was?USD452m.? The?
distribution?of?respondents??company?revenues?is?detailed?in?Figure?2?2,?below.?
24%
17%
13%
8%
3%
6%
6%
2%
1%
4%
3%
2%
2%
2%
1%
1%
1%
1%
7%
0% 5% 10% 15% 20% 25%
Manufacturing
Banking/Finance
Technology?(Computers,?Software,?
????Health?care
????Pharmaceuticals
Business?Services/Consulting
Retail
????Government?(State/Local)
????Government?(Federal,?including?
????Education
????Telecommunications
????Wholesale/Distribution
????Non?profit
????Oil?and?Gas/Mining/Energy
????Aerospace
????Insurance
????Media/Entertainment
????Utilities
????Other???please?specify
Q:?What?industry?do?you?work?in??(n=200)
4 W H I T E P A P E R | I O T E N T E R P R I S E S U R V E Y A
To qualify for the survey, respondents were required to work in companies with over USD10m
in annual revenue. Of the 200 respondents, 60% work in companies with annual revenues
of at least USD100m, while the mean annual revenue for the overall respondent sample was
USD452m. The distribution of respondents? company revenues is detailed in Figure 3.
Source: TIA Survey, 2016
Note: Q = What is your company?s approximate annual revenue? N=200
On average, the companies represented in the survey derive 58% of their revenues from the
sale of products, though the vast majority of participating companies generate their revenues
from sales of both products and services to an average mix of consumer (45%), enterprise
(38%) and governmental (17%) clients. Survey respondents indicated that, on average, the
majority (62%) of sales are generated from direct sales to their customers, with 38% coming
through distributor/channel partners.
Figure 3: Respondent company size
5?
??
? ? ? ?????? ?????????Machina?Research?and?TIA,?2016
Figure?2?2?Respondent?company?size?[Source:?TIA?Survey,?2016]?
?
Note:?Q?=?What?is?your?company?s?approximate?annual?revenue??N=200?
On?average,?the?companies?represented?in?the?survey?derive?58%?of?their?revenues?from?the?sale?of?
products,?though?the?vast?majority?of?participating?companies?generate?their?revenues?from?sales?of?
both?products?and?services?to?an?average?mix?of?consumer?(45%),?enterprise?(38%)?and?governmental?
(17%)? clients.? Survey? respondents? indicated? that,? on? average,? the? majority? (62%)? of? sales? are?
generated? from? direct? sales? to? their? customers,? with? 38%? coming? through? distributor/channel?
partners.?
Survey?responses?were?generated?from?upper?ranks?of?job?title?seniority,?with?all?participants?being?of?
director?level?or?higher,?as?detailed?by?Figure?2?3,?below.?The?survey?methodology?was?designed?to?
ensure?that?respondents?were?both?of?senior?job?level?as?well?as?familiar?with?their?company?IoT?plans?
and? aspirations? in? order? to? qualify? for? the? survey.? As? a? result,? 56%? of? the? respondent? base? was?
comprised?of?vice?presidents?and?C?level?executives?with?the?remaining?44%?coming?from?director?
level?employees.?
6%
12% 13% 11%
23%
18%
20%
0%
5%
10%
15%
20%
25%
????$11?$15
million
????$16???$25
million
????$25?$50
million
????$51?$99
million
$100?$500
million
$501?$999
million
$1?billion
plus
Approximate?Annual?Revenue
A W H I T E P A P E R | I O T E N T E R P R I S E S U R V E Y 5
Survey responses were generated from upper ranks of job title seniority, with all participants
being of director level or higher, as detailed by Figure 4. The survey methodology was designed
to ensure that respondents were both of senior job level as well as familiar with their company
IoT plans and aspirations in order to qualify for the survey. As a result, 56% of the respondent
base was comprised of vice presidents and C-level executives with the remaining 44% coming
from director-level employees.
The mix of respondents? business units was led primarily (48%) by executives working in
Information Technology (IT), with the remaining respondents broadly distributed among other
business units.
Figure 4: Job title distribution
of survey respondents
Source: TIA Survey, 2016
Note: Q = What is your job title/level of seniority? n=200
6?
??
? ? ? ?????? ?????????Machina?Research?and?TIA,?2016
Figure?2?3?Job?title?distribution?of?survey?respondents?[Source:?TIA?Survey,?2016]?
?
Note:?Q?=?What?is?your?job?title/level?of?seniority??n=200?
The?mix?of?respondents??business?units?was?led?primarily?(48%)?by?executives?working?in?Information?
Technology?(IT),?with?the?remaining?respondents?broadly?distributed?among?other?business?units.?
3 Building a new era of enterprise IoT
The?future?plans?of?survey?s?respondents?indicate?that?over?the?next?two?years,?the?vast?majority?of?
enterprises?is?expected?to?have?implemented?an?IoT?project,?keeping?in?mind?that?budget?and?scope?
are?highly?variable.?As?of?early?March?2016,?48%?of?survey?respondents?indicated?their?firm?is?actively?
using?IoT?technologies?in?some?capacity?with?an?additional?43%?planning?or?expecting?to?deploy?IoT?in?
six?months?to?two?years??time?(see?Figure?5).?According?to?the?survey?responses,?the?overall?size?of?the?
current? IoT? business? opportunity? should? approximately? double? by? year?end? 2018.? Looking? further?
ahead,?5%?of?respondents?report?a?longer?term?interest?in?IoT?while?another?3%?are?still?learning?or?
are?interested?in?learning?more?about?IoT.?The?survey?responses?indicate?that?IoT?solutions?are?quickly?
becoming?a?standard?element?of?US?enterprise?activity,?though?the?extent?of?implementation?across?
multiple?elements?of?the?enterprise?is?highly?variable.?
Director?level
44%
Vice?
President?
level
17%
C?level?(CEO,?
CFO,?CIO,?
CTO,?CMO,?
COO,?etc.)
39%
Respondent?job?level?seniority?
breakout
6 W H I T E P A P E R | I O T E N T E R P R I S E S U R V E Y A
Building a new era of enterprise IoT
The future plans of survey?s respondents indicate that over the next two years, the vast majority
of enterprises is expected to have implemented an IoT project, keeping in mind that budget
and scope are highly variable. As of early March 2016, 48% of survey respondents indicated
their firm is actively using IoT technologies in some capacity with an additional 43% planning
or expecting to deploy IoT in six months to two years? time (see Figure 5). According to the
survey responses, the overall size of the current IoT business opportunity should approximate-
ly double by year-end 2018. Looking further ahead, 5% of respondents report a longer term
interest in IoT while another 3% are still learning or are interested in learning more about IoT.
The survey responses indicate that IoT solutions are quickly becoming a standard element of
U.S. enterprise activity, though the extent of implementation across multiple elements of the
enterprise is highly variable.
Figure 5: U.S. enterprise use of IoT will be quite common by 2018
Source: TIA Survey, 2016
7?
??
? ? ? ?????? ?????????Machina?Research?and?TIA,?2016
Figure?3?1?US?enterprise?use?of?IoT?will?be?quite?common?by?2018.?[Source:?TIA?Survey,?2016]?
?
?
3.1.1 Leading characteristics of IoT early adopters
While? the? adoption? of? IoT? solutions? is? expanding? quickly,? the? survey? responses? reveal? some? core?
characteristics? that? are? directly? associated? with? early? adoption? of? IoT? among? US? enterprises.? As?
demonstrated?in?Figure?6,?the?adoption?of?IoT?solutions?correlates?to?a?number?of?key?factors.?Early?
adopters?tend?to?come?from?companies?with?greater?focus?on?Technology,?in?industry?segments?that?
have?already?established?segment?specific?IoT?standards,?short?product?development?cycles,?and?with?
products?that?already?have?some?reporting?mechanism?built?in.?From?an?organizational?perspective,?
the?majority?of?early? IoT?adopters?already?works?with?a?systems? integrator? in?some?aspect?of?their?
business?and?expects?that?little?company?change?is?necessary?for?IoT?integration.?
48%
29%
14%
5% 3% 1% 2%0%
10%
20%
30%
40%
50%
60%
Actively?using
IoT
technologies
Planning?to
deploy?IoT
within?6?12
months
Expected
deployment
within?1?2
years
Longer?term
interest
Still?learning Haven't
thought
about?it,?but
interested?in
learning
more
No?interest?or
expectations
Company?Use?and?Interest?in?IoT
43%
A W H I T E P A P E R | I O T E N T E R P R I S E S U R V E Y 7
LEADING CHARACTERISTICS OF IOT EARLY ADOPTERS
While the adoption of IoT solutions is expanding quickly, the survey responses reveal some
core characteristics that are directly associated with early adoption of IoT among U.S. enter-
prises. As demonstrated in Figure 6, the adoption of IoT solutions correlates to a number of
key factors. Early adopters tend to come from companies with greater focus on technology,
in industry segments that have already established segment-specific IoT standards and short
product development cycles, with products that already have some reporting mechanism built
in. From an organizational perspective, the majority of early IoT adopters already works with
a systems integrator in some aspect of their business and expects that little company change
is necessary for IoT integration.
Figure 6: Leading characteristics of IoT early adopters
Source: TIA Survey, 2016
8?
??
? ? ? ?????? ?????????Machina?Research?and?TIA,?2016
Figure?3?2?Leading?characteristics?of?IoT?early?adopters?[Source:?TIA?Survey,?2016]?
?
?
Consistent?with?early?adopters?being?relatively?well?resourced,?they?are?also?most?likely?to?take?the?
lead?in?driving?IoT?project?builds?with?internal?teams?and?leadership.?As?the?graph?below?highlights,?
the?vast?majority?of?early?adopter?companies?are?likely?to?take?on?a?lead?role?in?building?IoT?solutions.?
Non?adopters,?on?the?other?hand,?are?nearly?split?as?to?how?their?potential?effort?may?be?lead.?Despite?
the?fact?that?enterprises?consistently?report?concern?over?the?complexity?of?IoT?implementations,?US?
enterprises?demonstrate?a?clear?preference?for?taking?the?lead?in?building?their?own?IoT?projects,?with?
87%? of? companies? indicating? that? they? are? likely? lead? IoT? implementations? on? their? own.? This?
preference? does? not? appear? to? exclude? the? need? for? implementation? partners,? however,? as? few?
companies?have?all?the?skills?and?experience?already?in?house?to?be?able?completing?implement?an?IoT?
project? independently.?This? is? reflected? in?the?fact?that?74%?of?companies?surveyed?currently?work?
with?systems?integrators?for?internal?projects.?
48%
57%
74%
57% 62%
65%
0%
10%
20%
30%
40%
50%
60%
70%
80%
All?organizations
surveyed
Little?change
needed?in
company?to
integrate?IoT
Already?industry
IoT?standards?in
place?specific
Company
already?works
with?a?system
integrator?for
large?IT?products
Current
products?already
have?built?in
reporting
mechanisms
Product
development
cycle?is?under?6
months
Adoption?of?IoT?by?Business?Characteristic
8 W H I T E P A P E R | I O T E N T E R P R I S E S U R V E Y A
Consistent with early adopters being relatively well-resourced, they are also most likely to take
the lead in driving IoT project builds with internal teams and leadership. As Figure 7 highlights,
the vast majority of early adopter companies are likely to take on a lead role in building IoT
solutions. Non-adopters, on the other hand, are nearly split as to how their potential effort
may be led. Despite the fact that enterprises consistently report concern over the complexity
of IoT implementations, U.S. enterprises demonstrate a clear preference for taking the lead in
building their own IoT projects, with 87% of companies indicating that they are likely to lead
IoT implementations on their own. This preference does not appear to exclude the need for
implementation partners, however, as few companies have all the skills and experience already
in-house to be able completing implement an IoT project independently. This is reflected in
the fact that 74% of companies surveyed currently work with systems integrators for internal
projects.
Figure 7: How likely would your company be to take on the lead role
of building IoT solutions itself?
Source: TIA Survey, 2016
9?
??
? ? ? ?????? ?????????Machina?Research?and?TIA,?2016
Figure?3?3?How?likely?would?your?company?be?to?take?on?the?lead?role?of?building?IoT?solutions?itself??
[Source:?TIA?Survey,?2016]?
?
Note:?DIY?=?combined?responses?of??Absolutely??and??Very?Likely.?3rd?Party?User?=?combined?responses?of??Somewhat?Likely?,?
?Not?Very?Likely??and??Not?At?All?.?
3.1.2 Enterprises look to systems integrators as top choice for IoT partner
While? companies? report? strong? interest? in? taking? the? lead?on? IoT?projects,? the? reality? is? that?most?
enterprises? will? seek? 3rd? party? partners? to? assist? in? the? development? and? implementation? of? IoT?
solutions.?Considering?the?high?percentage?of?enterprise?engagements?with?systems?integrators?(SIs),?
it?is?of?little?surprise?that?28%?of?enterprises?rank?SIs?as?their?top?trusted?choice?of?IoT?partner.?Despite?
this? preference? for? SIs,? enterprises? are? increasingly? turning? to? comprehensive,? end?to?end?
implementation?players?of?the?IoT?vendor?ecosystem?as?trusted?IoT?partners.?As?shown?in?Figure?3?4,?
the?choices?for?trusted?IoT?partners?focus?on?partners?that?have?a?broad?set?of?expertise?and?tools?to?
guide? clients? through? the? complexities? of? IoT? project? implementation? and? integration?with? legacy?
systems.?In?addition?to?those?types?of?companies,?16%?of?enterprises?chose?business?software?platform?
companies?such?as?Salesforce.com?and?SAP?as?their?top?trusted?partner,?emphasizing?the?crucial?nature?
of?these?business?software?platforms?in?enterprise?operations.?It?also?reflects?the?changing?strategies?
among?these?software?platform?groups?as?they?expand?their?partner?ecosystems?and?enhance?their?
own?systems?integration?services?to?address?the?complexity?of?IoT?implementation?and?integration?of?
IoT?solutions?with?underlying?business?platforms?and?legacy?systems.??
36%
33%
18%
12%
2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Absolutely Very?likely Somewhat
likely
Not?very
likely
Not?at?all
Likelihood?of?Taking?the?Lead?Role?in?Building?
IoT?Solutions
A W H I T E P A P E R | I O T E N T E R P R I S E S U R V E Y 9
ENTERPRISES LOOK TO SYSTEMS INTEGRATORS AS TOP CHOICE FOR IOT PARTNER
While companies report strong interest in taking the lead on IoT projects, the reality is that most
enterprises will seek third-party partners to assist in the development and implementation of IoT
solutions. Considering the high percentage of enterprise engagements with systems integrators
(SIs), it is of little surprise that 28% of enterprises rank SIs as their top trusted choice of IoT
partner. Despite this preference for SIs, enterprises are increasingly turning to comprehensive,
end-to-end implementation players of the IoT vendor ecosystem as trusted IoT partners. As
shown in Figure 8, the choices for trusted IoT partners focus on partners that have a broad
set of expertise and tools to guide clients through the complexities of IoT project implemen-
tation and integration with legacy systems. In addition to those types of companies, 16% of
enterprises chose business software platform companies such as Salesforce.com and SAP as
their top trusted partner, emphasizing the crucial nature of these business software platforms
in enterprise operations. It also reflects the changing strategies among these software platform
groups as they expand their partner ecosystems and enhance their own systems integration
services to address the complexity of IoT implementation and integration of IoT solutions with
underlying business platforms and legacy systems.
Figure 8: Enterprises choose comprehensive solution partners for
IoT
Source: TIA Survey, 2016
10?
??
? ? ? ?????? ?????????Machina?Research?and?TIA,?2016
Figure?3?4?Enterprises?choose?comprehensive?solution?partners?for?IoT?[Source:?TIA?Survey,?2016]?
?
From? a? market? development? perspective,? the? relatively? broad? selection? of? trusted? IoT? partners?
highlights?the?highly?fragmented?nature?of?the?current?IoT?industry,?presaging?a?likely?period?of?market?
consolidation?among? IoT?solution?vendors.? In?particular,? IoT?platform?providers?now?number?more?
than?200,?creating?an?unsustainable?level?of?fragmentation?at?this?stage?of?the?market?s?development.?
In?this?context,?our?survey?results?provide?clear?guidance?for?the?IoT?vendor?community:?To?rise?to?the?
top?of?the?partner?universe,?vendors?must?increasingly?develop?the?capabilities,?assets?and?partners?
necessary?to?help?enterprise?clients?develop?IoT?solutions?in?a?comprehensive,?end?to?end?approach?
that?removes?as?much?complexity?from?the?process?as?possible.?
28%
16%
16%
15%
9%
8%
3%
3%
2%
3%
0% 10% 20% 30%
Systems?integrator?(e.g.?Accenture,?HPE,?IBM,?Wipro,?Tech
Mahindra,?etc.)
IoT/M2M?End?to?End?provider?using?standardized?cellular
technologies?(e.g.?Sierra?Wireless,?Telit)
Business?software?platform?company?(?Salesforce.com,
Oracle,?SAP)
IoT/M2M?end?to?end?solution?provider?that?use?low?cost
proprietary?networks?and?technology?(e.g.?Sigfox,?Ingenu,
LinkLabs,?Freewave,?Senet)
IoT/M2M?service?provider?(e.g.?Aeris,?Numerex,?Kore,?etc.)
Mobile?operator?(e.g.?AT&T,?Verizon,?Sprint,?etc.)
Engineering?design?firm
IoT?platform?company?(e.g.?ThingWorx,?Autodesk,?Xively,
Jasper?Wireless,?etc.)
We're?building?it?in?house
Not?sure
What?kind?of?organization?would?you?trust?and?approach?to?
help?with?IoT?implementation?
10 W H I T E P A P E R | I O T E N T E R P R I S E S U R V E Y A
From a market development perspective, the relatively broad selection of trusted IoT partners
highlights the highly fragmented nature of the current IoT industry, presaging a likely period
of market consolidation among IoT solution vendors. In particular, IoT platform providers now
number more than 200, creating an unsustainable level of fragmentation at this stage of the
market?s development. In this context, our survey results provide clear guidance for the IoT
vendor community: To rise to the top of the partner universe, vendors must increasingly develop
the capabilities, assets and partners necessary to help enterprise clients develop IoT solutions
in a comprehensive, end-to-end approach that removes as much complexity from the process
as possible.
A W H I T E P A P E R | I O T E N T E R P R I S E S U R V E Y 11
Enterprises are embracing the pre-eminence of IoT data in their
strategic and tactical initiatives and processes
One of the clearest themes to emerge from this survey is that enterprises have broadly accept-
ed the strategic importance of product data to the health of their businesses. A full 98% of
respondents consider product monitoring useful to their businesses, with 78% indicating that
the ability to receive real-time data from their products would be extremely beneficial to their
efforts. At this stage in the development of IoT adoption, enterprise interest in real-time product
data is almost entirely aspirational, as a mere 2% of respondents reported currently getting
real-time data from their products. Despite this gap between aspiration and current practice,
our survey panel clearly, and in no uncertain terms, now views product data as crucial to their
businesses. In fact, 72% of enterprises reported having plans to develop means of capturing
product feature usage. Product performance, analytics gains prominence and signals key shift
among enterprises? strategic reasons for implementing IoT
Across the survey?s diverse panel of respondents, monitoring product performance has emerged
as a clear common theme among top strategic reasons for enterprise adoption of IoT. Notably,
the focus on product performance monitoring and analysis through IoT implementations is seen
as improving both ongoing product maintenance/service as well as providing crucial feedback
on current products that will inform future product design efforts. As detailed in Figure 9, both
capabilities were prominently included in the top three strategic reasons for enterprise inter-
est in IoT, along with the more conventional reasons, such as expanding revenues, reducing
operation expenses and gaining competitive advantage.
Figure 9: Strategic reasons for enterprise adoption of IoT (rank top 3)
Source: TIA Survey, 2016
12?
??
? ? ? ?????? ?????????Machina?Research?and?TIA,?2016
Figure?4?1?Strategic?reasons?for?enterprise?adoption?of?IoT?(rank?top?3)?[Source:?TIA?Survey,?2016]?
?
The?focus?on?product?performance?data?represents?an?important?shift?in?enterprise?engagement?with?
IoT?solutions.?Top?historical?IoT?strategic?objectives?of?IoT?have?focused?on??top?line??(i.e.?expanded?
revenues),??bottom?line??(i.e.?reduced?operational?expenses)?and?regulatory?compliance?issues.?While?
these? core? objectives? clearly? still? resonate?with? enterprise? decision?makers,? applying? performance?
related? data? into? product? design? and?maintenance? efforts? signals? an? expanded? acceptance? of? the?
growing? value? and? use? of? IoT? data? in?multiple? business? units? within? the? enterprise.? This? growing?
emphasis?on?performance?data?portends?a?step?change?in?the?longer?trajectory?of?IoT?data?influencing?
and?indeed?driving?a?greater?volume?of?and?diversity?business?unit?decisions.?
In?anticipation?of?potential?shifts?in?IoT?zeitgeist?regarding?use?of?product?data,?our?survey?solicited?
greater?details?on?which?business?systems?might?benefit?most?from?IoT?data.?When?asked?where?the?
most?value?would?be? found?after? integration?of?device?level?data? into?other?business? systems,? the?
largest? shares? of? enterprise? decision? makers? indicated? that? operations? applications? and? business?
intelligence/data?analytics?would?benefit?most.?As?outlined?in?Figure?10,?these?systems?topped?the?list?
of?several?core?systems?that?are?considered?fundamental?in?most?enterprises.??
58%
56%
38%
38%
34%
31%
25%
20%
25%
10%
25%
18%
18%
4%
0
0
0% 20% 40% 60% 80%
To?better?monitor?performance?of?products/?machines/
devices?for?better?service/?maintenance
To?analyze?product/service?performance?for?improving
future?designs?and/or?systems
To?reduce?operational?expenses
To?expand?revenue?opportunities
To?better?compete?with?rival?products/services
To?create?new?ways?to?support?and?engage?with?customers
to?drive?satisfaction
To?reduce?break/fix?cycle?and?mean?time?to?resolution
To?be?able?to?update?devices/machines?with?over?the?air
updates
Top?Strategic?Reasons?for?IoT?Adoption
Among?top?3?reasons Most?important?reason
12 W H I T E P A P E R | I O T E N T E R P R I S E S U R V E Y A
The focus on product performance data represents an important shift in enterprise engagement
with IoT solutions. Top historical IoT strategic objectives of IoT have focused on ?top line?
(i.e., expanded revenues), ?bottom line? (i.e., reduced operational expenses) and regulatory
compliance issues. While these core objectives clearly still resonate with enterprise decision
makers, applying performance related data into product design and maintenance efforts signals
an expanded acceptance of the growing value and use of IoT data in multiple business units
within the enterprise. This growing emphasis on performance data portends a step change in
the longer trajectory of IoT data influencing and indeed driving a greater volume of and diversity
business unit decisions.
In anticipation of potential shifts in IoT zeitgeist regarding use of product data, our survey
solicited greater details on which business systems might benefit most from IoT data. When
asked where the most value would be found after integration of device-level data into other
business systems, the largest share of enterprise decision makers indicated that operations
applications and business intelligence/data analytics would benefit most. As outlined in Figure
10, these systems topped the list of several core systems that are considered fundamental in
most enterprises.
Figure 10: Business systems that would gain greatest value
from IoT data
Source: TIA Survey, 2016
13?
??
? ? ? ?????? ?????????Machina?Research?and?TIA,?2016
Figure?10??Identifying?business?systems?that?would?gain?greatest?value?from?IoT?data?[Source:?TIA?
Survey,?2016]?
?
4.1.1 Across enterprises, IoT and M2M technologies are increasingly
recognized as holding strong promise for improving business operations
As?the?IoT?ecosystem?continues?to?evolve,?operational?efficiency?gains?remain?an?important?objective?
of?IoT?solutions?design?alongside?a?growing?array?of?other?business?improvements?that?also? impact?
broader?strategic?elements.?From?an?operational?standpoint,?efficiency?in?such?areas?as?service?parts?
management,? reducing?mean? time? to? resolution? (MTTR)? and? logistics?management? remain? as? top?
objectives.?The?results?from?this?survey?also?reflect?the?transformational?nature?that?IoT?solutions?can?
contribute?to?improved?performance?of?a?number?of?business?units?once?they?begin?to?embrace?the?
broader?impact?of?IoT.?As?detailed?in?Figure?4?3?below,?the?top?IoT?benefit?to?operations?identified?by?
survey?respondents?is?the?development?of?predictive?maintenance?capabilities.?
29%
24%
17%
13%
12%
7%
0% 5% 10% 15% 20% 25% 30% 35%
Operations?Applications
Business?Intelligence?&?Data?analytics
(examples:?SAP,?Tableau)
Mobile?Apps
CRM?(example:?Salesforce.com)
ERP?Systems?(examples:?SAP,?Oracle,
Sage,?Microsoft)
Customer?care?applications?(ticketing,
support,?maintenance)
Where?would?you?get?the?most?value?from?
device?level?data?
A W H I T E P A P E R | I O T E N T E R P R I S E S U R V E Y 13
ACROSS ENTERPRISES, IOT AND M2M TECHNOLOGIES ARE INCREASINGLY RECOG-
NIZED AS HOLDING STRONG PROMISE FOR IMPROVING BUSINESS OPERATIONS
As the IoT ecosystem continues to evolve, operational efficiency gains remain an important
objective of IoT solutions design alongside a growing array of other business improvements
that also impact broader strategic elements. From an operational standpoint, efficiency in such
areas as service parts management, reducing mean time to resolution (MTTR) and logistics
management remain as top objectives. The results from this survey also reflect the transfor-
mational nature that IoT solutions can contribute to improved performance of a number of
business units once they begin to embrace the broader impact of IoT. As detailed in Figure
11, the top IoT benefit to operations identified by survey respondents is the development of
predictive maintenance capabilities.
Figure 11: Operational benefits of IoT driving new service
capabilities and efficiencies
Source: TIA Survey, 2016
The fact that the current survey highlights the potential for developing preventive maintenance
capabilities represents an important shift in enterprise interpretation of IoT benefits. It is import-
ant to note that logistics/fleet management applications are among the longest-standing M2M
solutions in the market, with decades of proven performance benefits including reduced fuel con-
sumption and improved delivery outcomes. The current survey response points to the compelling
nature of IoT benefits that can not only improve key tasks and services but, perhaps more import-
ant, can lead to evolution of business models and customer engagement approaches. Predictive
maintenance efforts effectively position companies to reconsider their existing business models
and the ongoing service relationships they have with clients. Detailed data related to product
and component performance not only provides valuable feedback on physical design and supply
chain suppliers, the potential for predictive maintenance also yields demonstrable improvements
in customer engagement as repairs and maintenance efforts can be scheduled during hours that
reduce the negative impact these efforts can have on a client?s daily operational requirements.
The fact that survey respondents ranked predictive maintenance top among operational benefits
reveals the growing acceptance that IoT-based data solutions are gaining across enterprises.
14?
??
? ? ? ?????? ?????????Machina?Research?and?TIA,?2016
Figure?4?2?Operational?benefits?of?IoT?driving?new?service?capabilities?and?efficiencies?[Source:?TIA?
Survey,?2016]?
?
The? fact? that? the? current? survey? highlights? the? potential? for? developing? preventive? maintenance?
capabilities?represents?an?important?shift?in?enterprise?interpretation?of?IoT?benefits.?It?is?important?
to?note?that?logistics/fleet?management?applications?are?among?the?longest?standing?M2M?solutions?
in?the?market,?with?decades?of?proven?performance?benefits?including?reduced?fuel?consumption?and?
improved?delivery? outcomes.? The? current? survey? response? points? to? the? compelling? nature? of? IoT?
benefits?that?can?not?only?improve?key?tasks?and?services?but,?perhaps?more?importantly,?can?lead?to?
evolution?of?business?models?and?customer?engagement?approaches.?Predictive?maintenance?efforts?
effectively? position? companies? to? reconsider? their? existing? business? models? and? ongoing? service?
relationships?they?have?with?clients.?Detailed?data?related?to?product?and?component?performance?
not?only?provides?valuable?feedback?on?physical?design?and?supply?chain?suppliers,?the?potential?for?
predictive?maintenance?also?yields?demonstrable?improvements?in?customer?engagement?as?repairs?
and?maintenance?efforts?can?be?scheduled?during?hours?that?reduce?the?negative?impact?that?these?
efforts? can? play? with? a? client?s? daily? operational? requirements.? The? fact? that? survey? respondents?
ranked?predictive?maintenance?top?among?operational?benefits?reveals?the?growing?acceptance?that?
IoT?based?data?solutions?are?gaining?across?enterprises.?
4.1.2 Supply chain efficiency gaining importance in IoT planning
Even?with?the?strong?operational?focus?of?many?IoT?projects,?only?16%?of?respondents?reported?that?
they?already?have?real?time?data?capabilities?in?place?to?monitor?and?control?their?operational?supply?
chain?management,? as? shown? in? Figure? 12.? Based?on? the? fact? that? 51%?of? respondents? are? either?
68%
61%
46%
34%
1%
3%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Predictive?maintenance
Service?parts?management?(having
the?right?part,?on?the?right?truck,?
Managing?mean?time?to?resolution
(MTTR)
Truck?roll?schedule?and?routes
Other???please?specify
Not?sure
What?could?be?positively?transformed?by?being?
connected?to?the?Internet?
14 W H I T E P A P E R | I O T E N T E R P R I S E S U R V E Y A
SUPPLY CHAIN EFFICIENCY GAINING IMPORTANCE IN IOT PLANNING
Even with the strong operational focus of many IoT projects, only 16% of respondents report-
ed that they already have real-time data capabilities in place to monitor and control their
operational supply chain management, as shown in Figure 12. Based on the fact that 51% of
respondents are either planning or building a supply chain management IoT solution, we expect
supply chain management to become a core focus for enterprises in next two to three years.
Figure 12: Real-time data usage gaining traction among U.S.
enterprises
Source: TIA Survey, 2016
15?
??
? ? ? ?????? ?????????Machina?Research?and?TIA,?2016
planning?or?building?a?supply?chain?management?IoT?solution,?we?expect?supply?chain?management?to?
become?a?core?focus?for?enterprises?in?next?2?3?years.?
Figure?12?Real?time?data?usage?gaining?traction?among?US?enterprises?[Source:?TIA?Survey,?2016]?
?
The? impetus? behind? this? focus? on? supply? chain?management? reflects? a? growing? awareness? of? the?
potential?benefits?of?a?connected?supply?chain.?Among?a?long?list?of?desirable?benefits?of?a?connected?
supply?chain,?enterprises?favour?the?ability?to?receive?alerts?regarding?new?or?imminent?problems?that?
threaten?to?disrupt?work?flow?and?to?monitor?the?health?and?performance?of?key?equipment?in?the?
supply?chain.?While?these?benefits?were?favoured,?results?show?that?enterprise?value?multiple?benefits?
of?a?connected?supply?chain,?as?detailed?in?Figure?13?below.?
16%
26% 25% 27%
5% 3%
0%
5%
10%
15%
20%
25%
30%
Company?already
has?similar
capabilities?in?place
with?current
products
Company?is
currently?building
solution
Company?is?in?early
stage?planning
process
Actively?learning
about?the?potential
for?this?technology
No?interest?at?this
time
Don't?know
Interest?and?Adoption?of?Real?Time?Sensor?
Data?in?Operations/Supply?Chain
A W H I T E P A P E R | I O T E N T E R P R I S E S U R V E Y 15
The impetus behind this focus on supply chain management reflects a growing awareness of
the potential benefits of a connected supply chain. Among a long list of desirable benefits of a
connected supply chain, enterprises favour the ability to receive alerts regarding new or immi-
nent problems that threaten to disrupt work flow and to monitor the health and performance
of key equipment in the supply chain. While these benefits were favoured, results show that
enterprise value multiple benefits of a connected supply chain, as detailed in Figure 13.
Figure 13: U.S. enterprises recognize IoT benefits to supply chain
Source: TIA Survey, 2016
16?
??
? ? ? ?????? ?????????Machina?Research?and?TIA,?2016
Figure?13?US?enterprises?recognize?IoT?benefits?to?supply?chain?[Source:?TIA?Survey,?2016]?
?
5 Enterprises emphasize the importance of
standards to their adoption of IoT
For?many?decades,?the?role?of?standards?in?facilitating?the?growth?of?the?mobile?telecommunications?
industry?and?the?Internet,?facilitating?global?deployment?and?usage?of?technologies?such?as?GSM,?LTE,?
and? IPv6.? However,? despite? that? long? track? record? of? standards?based? success,? intense? periods? of?
technology? innovation,? such? as? what? the? market? is? experiencing? today? with? IoT,? often? lead? to? a?
flourishing?of?competing?technologies,?protocols?and?even?standards.??
46%
45%
43%
41%
36%
33%
19%
11%
0% 20% 40% 60%
Real?time?alerts?to?existing?or?imminent?problems?that?could
cause?a?disruption?in?production?and/or?delivery?schedule
Capability?of?performing?remote?diagnostics?and?repair?of
manufacturing?equipment
Monitoring?of?production?machine/device/component?health?for
preventive?maintenance
Ability?to?monitor?and?analyze?stages?of?performance?for?each
element?of?the?production?and?supply?chains
Capacity?to?measure?performance?and?reliability?of?individual
components?to?improve?future?decisions?regarding?the?inclusion
of?specific?components?and?component?suppliers
Ability?to?actively?track?and?manage?inventory?levels?of
components?and?parts
Better?understand?usage?environment?factors???such?as
temperature,?humidity,?timing?of?usage,?people?traffic?patterns,
etc.
Ability?to?sync?device?data?directly?with?back?office?systems
Desirable?Technical?Characteristics?of?an?Always?
Connected?Supply?Chain?and?Production?Process
16 W H I T E P A P E R | I O T E N T E R P R I S E S U R V E Y A
Enterprises emphasize the importance of standards to their adoption
of IoT
For many decades, the role of standards in facilitating the growth of the mobile telecommu-
nications industry and the Internet, fostering global deployment and usage of technologies
such as GSM, LTE, and IPv6, has been recognized. However, despite that long track record of
standards-based success, intense periods of technology innovation, such as what the market
is experiencing today with IoT, often lead to a flourishing of competing technologies, protocols
and even standards.
ENTERPRISES RELY ON STANDARDS FOR FUTURE COMPATIBILITY OF
PRODUCTS AND SERVICES
With the complexity of available IoT-capable technology choices, enterprises face a daunting
challenge of determining which solutions will not only achieve their business objectives but also
allow for the integration of legacy systems and a path to future compatibility. The proliferation
of standards at various levels of the IoT service delivery chain presents a unique challenge to
companies looking to connect and improve their products and services. But how important
do enterprises think standards are to the evolution of IoT? The majority of our survey respon-
dents indicate that they consider standards to not only be important to their companies and
industries, but also as a key approach to futureproofing their products, systems and operations
while also ensuring smoother IoT implementations. Respondents also weighed in on what
they consider to be the most important catalysts for the growth of IoT standards. As detailed
in Figure 14, the survey highlights several top-of-mind catalysts for IoT growth submitted by
survey respondents.
Figure 14: Top rated catalysts considered important for IoT
Standards
Source: TIA Survey, 2016
17?
??
? ? ? ?????? ?????????Machina?Research?and?TIA,?2016
5.1 Enterprises rely on standards for future compatibility of
products and services
With? the? complexity? of? available? IoT?capable? technology? choices,? enterprises? face? a? daunting?
challenge?of?determining?which?solutions?will?not?only?achieve?their?business?objectives?but?also?allow?
for?the?integration?of?legacy?systems?and?a?path?to?future?compatibility.?The?proliferation?of?standards?
at?various?levels?of?the?IoT?service?delivery?chain?presents?a?unique?challenge?to?companies?looking?to?
connect?and?improve?their?products?and?services.?But?how?important?do?enterprises?think?standards?
are? to? the? evolution? of? IoT?? The?majority? of? our? survey? respondents? indicate? that? they? consider?
standards?to?not?only?be?important?to?their?companies?and?industries,?but?also?as?a?key?approach?to?
futureproofing? their? products,? systems? and? operations? while? also? ensuring? smoother? IoT?
implementations.? Respondents? also?weighed? in? on?what? they? consider? to? be? the?most? important?
catalysts?for?the?growth?of?IoT?standards.?As?detailed?in?Figure?5?1?below,?the?survey?highlights?several?
top?of?mind?catalysts?for?IoT?growth?submitted?by?survey?respondents.?
Figure?5?1?Top?rated?catalysts?considered?important?for?IoT?standards?[Source:?TIA?Survey,?2016]
?
The?enterprise?need?for?IoT?standards?to?be?compatible?with?existing?systems?and?equipment?is?being?
driven? predominantly? by? near?term? project? considerations? and? plans.? In? fact,? 76%? of? enterprises?
indicate?that?they?have?short?term?(i.e.?within?next?two?years)?goals? for?the? integration?of?new?IoT?
solutions?with?legacy?systems.?Analysis?of?survey?results?shows?that?companies?focused?on?integration?
of? IoT? solutions? with? legacy? systems? are? generally? further? along?with? adoption? of? IoT? but? have? a?
23%
22%
21%
18%
11%
6%
0% 5% 10% 15% 20% 25%
Adaptability?of?standards?to?innovation?cycles
Interoperability?among?standards
Consolidation?of?standards?to?small?number
Homogeneity?of?applicable?standards
Broad?industry?support
Customer?demand?of?standards
Most?Important?Catalyst?for?IoT?Standards?to?Gain?Traction
A W H I T E P A P E R | I O T E N T E R P R I S E S U R V E Y 17
The enterprise need for IoT standards to be compatible with existing systems and equipment
is being driven predominantly by near-term project considerations and plans. In fact, 76%
of enterprises indicate that they have short-term (i.e., within next two years) goals for the
integration of new IoT solutions with legacy systems. Analysis of survey results shows that
companies focused on integration of IoT solutions with legacy systems are generally further
along with adoption of IoT but have a different mindset, set of concerns and set of objectives
than companies primarily focused on new IoT projects, as detailed in Figure 15.
Figure 15: Key characteristics of Enterprises looking to integrate
legacy systems with new IoT solutions
Source: TIA Survey, 2016
18?
??
? ? ? ?????? ?????????Machina?Research?and?TIA,?2016
different?mindset,?set?of?concerns?and?set?of?objectives?than?companies?primarily?focused?on?new?IoT?
projects,?as?detailed?in?Figure?5?2?below.?
Figure? 5?2? Key? characteristics? of? Enterprises? looking? to? integrate? legacy? systems? with? new? IoT?
solutions?[Source:?TIA?Survey,?2016]?
?
The?volume?and?objectives?of?these?projects?are?somewhat?complicated?by?the?fact?that?the?majority?
(59%)?of?survey?respondents?reported?that?they?expect?the?magnitude?of?change?for?IoT?integrations?
to?be?either? significant?or?major? for? their? companies.? ? In?part,? the?expected?magnitude?of? change?
expected?by?enterprises?is?related?to?the?fact?that?IoT?implementations?involve?multiple?components?
of?product?development?and?service?delivery.?As?demonstrated?in?Figure?5?3?below,?the?vast?majority?
of?enterprises?view?standards?as?a?fundamental?path?to?ensuring?future?compatibility?across?a?wide?
spectrum?of?products?and?services.?Indeed?standards?are?considered?crucial?to?the?future?compatibility?
of?multiple?types?of?products,?services?and?systems?that?are?core?to?the?operations?of?most?enterprises.?
In?particular,?survey?respondents?called?out?devices?and?equipment?as?being?the?elements?most? in?
need?of?standards?to?ensure?their?future?compatibility?with?contemporary?systems?and?devices.?
22%
32% 34%
42%
33%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Total Actively?using?IoT
technology
IoT?standards?crucial
to?"future?proofing"
company?operations
IoT?concerns?about
complexity?of?imple?
mentation
Would?combine?IoT
data?with?financial
software
Types?of?Organizations?Focused?Exclusively?on?
Integration?with?Legacy?Systems
18 W H I T E P A P E R | I O T E N T E R P R I S E S U R V E Y A
The volume and objectives of these projects are somewhat complicated by the fact that the
majority (59%) of survey respondents reported that they expect the magnitude of change for
IoT integrations to be either significant or major for their companies. In part, the expected
magnitude of change expected by enterprises is related to the fact that IoT implementations
involve multiple components of product development and service delivery. As shown in Figure
16, the vast majority of enterprises view standards as a fundamental path to ensuring future
compatibility across a wide spectrum of products and services. Indeed, standards are con-
sidered crucial to the future compatibility of multiple types of products, services and systems
that are core to the operations of most enterprises. In particular, survey respondents called
out devices and equipment as being the elements most in need of standards to ensure their
future compatibility with contemporary systems and devices.
Figure 16: Enterprises rely on standards for future compatibility of
products and services
Source: TIA Survey, 2016
19?
??
? ? ? ?????? ?????????Machina?Research?and?TIA,?2016
Figure?5?3?Enterprises?rely?on?standards?for?future?compatibility?of?products?and?services?[Source:?
TIA?Survey,?2016]?
?
Future?compatibility?concerns?are?important?both?at?a?product/service?level,?but?also?to?a?company?s?
operations? in? order? to? ensure? continuity? of? production? in? the? context? of? future? changes? and?
reduce/eliminate? the?need? for?extensive?and?expensive? systems? integration?projects.?The?strategic?
value?and?nature?of?future?proofing?operations?is?reflected?in?the?fact?that?92%?of?enterprise?decision?
makers? listed?standards?as?being?at? least?reasonably? important?to? future?compatibility?of?company?
operations.? A? full? 68%? indicated? that? standards? were? either? crucial? of? significantly? important? to?
operations?future?proofing,?underscoring?enterprise?familiarity?with?and?the?importance?of?standards?
in?multiple?elements?of?the?enterprise,?as?detailed?in?Figure?5?4?below.?
96%
88%
88%
85%
85%
85%
75% 80% 85% 90% 95% 100%
Device?&?equipment
Platforms?(e.g.?device?management,?assembly
line,?engineering/design,?etc.)
Monitoring?and?control?systems
Data?extraction?and?analytics
Application
Back?office?systems?(e.g.?billing,?ERP,?CRM,?etc.)
Products?and?Services?Where?Standards?are?Important?for?
?Future?Proofing?
A W H I T E P A P E R | I O T E N T E R P R I S E S U R V E Y 19
Future compatibility concerns are important both at a product/service level, and to a compa-
ny?s operations in order to ensure continuity of production in the context of future changes
and reduce/eliminate the need for extensive and expensive systems integration projects. The
strategic value and nature of future proofing operations is reflected in the fact that 92% of
enterprise decision makers listed standards as being at least reasonably important to future
compatibility of company operations. A full 68% indicated that standards were either crucial
of significantly important to operations future proofing, underscoring enterprise familiarity with
and the importance of standards in multiple elements of the enterprise, as detailed in Figure
17 below.
Figure 17: Enterprises rely on standards for future compatibility of
operations
Source: TIA Survey, 2016
While standards are considered fundamental for many company concerns, there is a number
of enterprise characteristics that correlate with enterprises that demonstrate an elevated need
for standards. Companies that rank standards highly for their importance share a number of
correlated characteristics, including the facts that:
f Companies are early adopters of IoT.
f Companies are focused exclusively on integration of IoT with legacy systems.
f Companies operate in industries that have standards in place already.
f Companies are concerned about the security of IoT devices.
Analysis of the survey results also highlights the fact that C-level executives at enterprises tend
to rate standards as being more strategically important than do vice president- and director-
level decision makers. Therefore, vendors preparing business development presentations for
C-level executives in charge of enterprise IoT projects should be careful to highlight all the stan-
dards compatible with their products and be prepared to offer guidance on standards-based
system integration and product development.
20?
??
? ? ? ?????? ?????????Machina?Research?and?TIA,?2016
Figure?5?4?Enterprises?rely?on?standards?for?future?compatibility?of?operations?[Source:?TIA?Survey,?
2016]?
?
While? standards? are? considered? fundamental? for? many? company? concerns,? there? is? a? number? of?
enterprise? characteristics? that? correlate? with? enterprises? that? demonstrate? an? elevated? need? for?
standards.? Among? companies? that? rank? standards? highly? for? their? importance? share? a? number? of?
correlated?characteristics,?including?the?facts?that:?
? Companies?are?early?adopters?of?IoT?
? Companies?are?focused?exclusively?on?integration?of?IoT?with?legacy?systems?
? Companies?operate?in?industries?that?have?standards?in?place?already?
? Companies?are?concerned?about?the?security?of?IoT?devices.?
Analysis?of?the?survey?results?also?highlights?the?fact?that?C?level?executives?at?enterprises?tend?to?rate?
standards?as?being?more?strategically? important?than?do?vice?president??and?director?level?decision?
makers.?Therefore,?vendors?preparing?business?development?pitches?for?C?level?executives?in?charge?
of? enterprise? IoT? projects? should? be? careful? to? highlight? all? the? standards? compatible? with? their?
products? and? be? prepared? to? offer? guidance? on? standards?based? system? integration? and? product?
development.?
?
?
24%
42%
26%
8%
1%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Crucially?important,?future
compatibility?of?our
company?operations?are
highly?dependent?on
standards
Significantly?important,
major?systems/?equipment/
platforms?are?standards?
based?and?must?be?aligned
with?future?standards
bodies
Reasonably?important,
some?of?my?company's
systems/?equipment/
platforms?require?standards
Little?to?no?importance,?my
company's?operations?are
unique
Don't?know
How?important?are?standards?to??future?proofing??company?operations?
20 W H I T E P A P E R | I O T E N T E R P R I S E S U R V E Y A
Conclusion
IoT solutions adoption among enterprises continues to gain speed as companies expand their
understanding of the multitude of potential benefits from IoT projects. With 48% of respondents
reporting that their enterprises currently use IoT technologies and another 43% expecting to
do so in the next 24 months, IoT adoption has arguably reached critical mass among U.S.
companies. In fact, given the growing number of companies that have either implemented
an IoT project or have one in the planning stages, it is clear that IoT will play an important
role in enabling businesses to remain relevant and competitive in the years to come. It is
therefore critical that enterprises start developing their IoT strategy soon in order to improve
their products and services, but also to defend their competitive positioning. There is already a
meaningful base of IoT users today, and from these early adopters are some lessons certainly
worth considering:
f While IT and C-suite executives tend to lead IoT decision making, IoT efforts are becoming common
across multiple business units.
f Enterprises that are early IoT adopters generally come from industries where standards have already
been reasonably well established for their specific industry and where there are fewer legacy sys-
tems to integrate.
f Enterprises consider standards to be a crucial component of IoT growth, as well as to their efforts to
ensure that operations and products are forward and backward compatible with company systems.
f The majority of IoT adopters report that they prefer to take the lead in building IoT solutions.
However, the survey results also highlight the need for most enterprises to also engage with third
party partners with specific expertise in IoT. This reflects both the need for enterprises to control the
development and outcomes of IoT projects as well as the need for partners to help reduce/remove
complexity from the design and implementation process. For the vendor community, the results of
this survey provide the strategic directive that providing an end-to-end solution is crucial to gaining
traction in the majority of U.S. enterprises.
A W H I T E P A P E R | I O T E N T E R P R I S E S U R V E Y
W H I T E P A P E R | I O T E N T E R P R I S E S U R V E Y A
TelecommunicaTions indusTry associaTion
Headquarters
1320 N. Courthouse Rd.
Suite 200
Arlington, VA 22201
USA
Phone: +1.703.907.7700
Fax: +1.703.907.7727
Affiliate Office
United States Information Technology
Office (USITO)
Room 516
Beijing Fortune Plaza Office Tower
7 East Third Ring Middle Road
Chaoyang District
Beijing, 100020
People?s Republic of China
Phone: +86.10.6530.9368/69/70
Fax: +86.10.6530.0367
usito.org
usito@usito.org
tiaonline.org

About InterDigital

InterDigital develops mobile technologies that are at the core of devices, networks, and services worldwide. We solve many of the industry's most critical and complex technical challenges, inventing solutions for more efficient broadband networks and a richer multimedia experience years ahead of market deployment.